The invention relates generally to facilitating credit transactions and, more particularly, the invention relates to credit vehicles that provide users with a use incentive.
In today""s economy, people are using credit cards to purchase goods and services more than ever before. Consequently, credit and charge cards (xe2x80x9ccredit cardsxe2x80x9d) currently are accepted by more traditional merchants that traditionally did not accept credit cards. For example, credit cards now are accepted at gas station pumps, small convenience stores, grocery stores, and even real estate agencies. Credit cards also are used to automatically pay recurring monthly bills, such as utility, telephone and cable television bills.
One widely used type of prior art credit card rebates a percentage of every purchase to the credit card user. This rebate is provided to the user in various forms that encourage future spending. For example, such credit cards may provide a rebate toward the purchase of future goods (e.g., an automobile), or in the form of a cash payment to the user at the end of a twelve month period. With such rebate programs, the amount of the rebate typically increases with increased use of the card.
It also is known that savings rates in the United States are relatively low. It thus is desirable to encourage citizens to save at a greater rate, for example, to ensure a comfortable retirement. Of course, use of prior art rebate credit cards (e.g., those described above) does not encourage saving since rebates typically are spent upon receipt of a check, or used toward future purchases with a partner merchant (e.g., an automobile dealer).
In accordance with one aspect of the invention, an apparatus and method of facilitating a credit transaction between a user and a merchant provides a rebate amount that is directed to an investment vehicle. To that end, the method and apparatus receive information indicating that the user is to make a credit transaction with the merchant, and determine a rebate amount for the user for that credit transaction. The rebate amount thus is a function of the credit transaction. Accordingly, as noted above, at least a portion of the rebate amount is directed to be invested in an investment vehicle.
In some embodiments, the credit transaction includes an amount of credit requested by the user, and the method and apparatus further direct payment of the amount of credit requested by the user to the merchant. The credit transaction also may include an amount of credit requested by the user, wherein the rebate amount is a percentage of the amount of credit requested by the user. The rebate amount also may be a function of the merchant.
The investment vehicle includes at least one of an annuity, debt security, equity security, certificate of deposit, savings account, retirement account, and insurance product. For example, the investment vehicle may be a mutual fund, variable or fixed annuity, higher education savings account, and/or a bond. In illustrative embodiments, the rebate amount is directed to the investment vehicle after the credit transaction is completed. In still other embodiments, the credit transaction includes use of a credit card. Prior to directing the rebate amount to be invested, some embodiments confirm that that the user has been authorized to make the credit transaction.
Various embodiments of the invention are implemented as a computer program product having a computer usable medium with computer readable program code thereon. The computer readable code may be read and utilized by a computer system in accordance with conventional processes.